Successful builder/operator of Kwinana desalination project announced
14/4/05
Premier and Water Resources Minister Geoff Gallop announced today that the Multiplex-Degremont Joint Venture would build Perth's new seawater desalination plant.
The new plant will increase water supply by 45 gigalitres a year from October next year and would become the biggest single water source feeding into the Integrated Water Supply Scheme.
"The construction of this climate independent, new water factory signals an exciting move forward in the development of new water sources for Western Australia," Dr Gallop said.
"It clearly establishes the State as an innovator in keeping water flowing as our climate, as predicted, becomes hotter and drier. We are leading the nation when it comes to water resource management.
"Desalination delivers on a key election commitment that we would provide the integrated scheme with a weather independent source that would assist in bringing balance to our portfolio of water sources.
"By coming on-stream in time for the 2006-07 summer, it will rule out any possibility of job-destroying, total sprinkler bans that would also undermine the amenity of our beautiful city."
Under the deal, the cost of construction has increased from $346million (estimated last July) to $387million. But the plant's projected operating costs have decreased by more than 20 per cent due to improved desalination technology. This means that the potential cost impact on each household remains under one dollar per week at $44 per year - as stated last July.
The Premier announced the winning tender outside Rottnest Island's desalination plant, which provides more than 70 per cent of the island's drinking water.
He confirmed that the plant would be powered by renewable energy, probably wind power, saying the Water Corporation, which would own the plant, was well advanced in negotiations with a major supplier. A wind farm with as many as 50 wind turbines would be required to provide the 24 megawatts of power annually required by the plant.
Dr Gallop said the Department of Environment had advised the Water Corporation that the environmental aspects of the operation of a desalination plant at Kwinana could be appropriately managed.
"The department's advice is based on a number of independent, expert reports it required, relating to the predicted environmental effects," he said.
"Additionally, the Water Corporation has committed to a detailed program to monitor the health of Cockburn Sound on an ongoing basis."
The Premier said Multiplex-Degremont had the technical, financial and construction capabilities, the environmental background and, in the case of Degremont, a track record in the international desalination industry that would ensure the plant would be delivering water within 18 months.
He said work on the plant at Kwinana would begin immediately, with the workforce through the next 18 months likely to peak at about 200 people. Work on the pipelines and other components required to link the plant - approximately the size of a Bunnings warehouse - to the Integrated Water Supply Scheme would also begin shortly.
"My Government is committed to creating new jobs and protecting and enhancing WA's unique lifestyle and environment," Dr Gallop said.
The new plant will be owned by the Water Corporation and operated in a 25-year contract by Degremont.
It will be the biggest desalination plant in the southern hemisphere and will complement dams and groundwater schemes as a third water source for Perth, parts of the South-West and towns serviced through the Goldfields Pipeline to Kalgoorlie Boulder.
The Premier said the commitment to desalination as the next source came after the expenditure of more than $130million in the past three years, through an accelerated source development program involving both dam and groundwater projects. This had resulted in 39 gigalitres of new water being added to the integrated scheme.
"The changed climatic conditions and the two thirds reduction in stream flows into our dams forced my Government to think outside the square, as we demonstrated our commitment to a new approach to confronting WA's drying climate," he said.
"The $130million fast-tracked program was the Government's response to the worst drought period we have experienced and there is no doubt it helped us get through with only a two-day sprinkler roster.
"This new desalination plant will help restore the balance between supply and demand, but it is only one component of our plan to secure WA's water future.
"While the desalination plant will be the immediate focus, the State's 'Security through Diversity' approach to WA's water future will see a combination of new source developments, demand management and other initiatives progressed in the medium and longer term."
Premier's office: 9222 9475